Relocating from the United Kingdom to the United States

Relocating from the United Kingdom to the United States is a significant undertaking that requires meticulous planning. This guide provides comprehensive pre-planning advice for British citizens to help ensure a smoother transition.

1. Visa and Immigration:

The first and most crucial step is securing the correct visa. The type of visa you need will depend on the purpose and duration of your stay.

• Non-Immigrant Visas: For temporary stays, such as tourism, business, or specific employment, you might consider:

  • ESTA (Electronic System for Travel Authorization): For tourism or business visits of up to 90 days under the Visa Waiver Program (VWP). This is not for individuals intending to live and work permanently in the US.

  • B-1/B-2 Visitor Visas: For tourism, business, or medical treatment, typically allowing stays of up to six months.

  • Work Visas (e.g., H-1B, L-1): For individuals with job offers from US employers in specialty occupations or for intra-company transferees. These often require sponsorship from the US employer.

  • Student Visas (F-1, M-1): For individuals pursuing academic or vocational studies.

  • Treaty Trader/Investor Visas (E-1, E-2): For individuals engaging in substantial trade or investing a significant amount of capital in a US business.

• Immigrant Visas (Green Card): For those intending to live and work permanently in the US. Common pathways include:

  • Family-Sponsored: If you have close relatives who are US citizens or lawful permanent residents.

  • Employment-Based: Various categories exist based on skills, education, and work experience (e.g., EB-1 for extraordinary ability, EB-2 for advanced degrees, EB-3 for skilled workers). Often requires a job offer and labor certification.

  • Diversity Visa Lottery: An annual program providing a limited number of visas to individuals from countries with historically low rates of immigration to the US, including the UK.

  • Investment-Based (EB-5): Requires a significant investment in a new commercial enterprise that creates jobs for US workers.

Actionable Advice:

• Thoroughly research: Visit the U.S. Embassy and Consulates in the UK website and the U.S. Citizenship and Immigration Services (USCIS) website for detailed information on visa categories, eligibility, and application processes.

• Seek legal counsel: Consider consulting with an immigration lawyer specializing in US immigration for personalized advice, especially for complex cases or employment-based visas.

• Start early: Visa processing times can be lengthy, so begin the application process well in advance of your intended travel date.

2. Financial Planning:

Proper financial preparation is essential for a smooth transition.

• Cost of Living Research: Understand the cost of living in your intended US location, as it can vary significantly by state and city. Factor in housing, transportation, groceries, healthcare, and taxes.

• Banking:

  • Opening a US Bank Account: Research US banks that cater to international customers or allow you to open an account before arrival. Some UK banks may have US affiliates.

  • Transferring Money: Investigate the most cost-effective ways to transfer funds from the UK to the US (e.g., specialist currency exchange firms vs. traditional banks). Be aware of exchange rate fluctuations.

• Credit History: Your UK credit history will not automatically transfer to the US.

  • Building US Credit: Once in the US, apply for a US credit card (even a secured card if necessary) and use it responsibly to build a US credit score. This is crucial for renting, loans, and even some job applications. Some international card providers (like American Express) may consider your UK credit history when applying for a US card.

• Taxes: The US tax system is complex and different from the UK's.

  • US Tax Residency: Determine your US tax residency status (e.g., Green Card test, Substantial Presence Test). US residents are generally taxed on their worldwide income.

  • UK-US Double Taxation Treaty: This treaty helps prevent double taxation on the same income. Familiarize yourself with its provisions and how to claim benefits (e.g., using Form 8833).

  • Foreign Account Tax Compliance Act (FATCA) and FBAR: Be aware of reporting requirements for foreign financial accounts (including UK accounts) to the US Treasury (FinCEN Form 114 - FBAR) and potentially the IRS (Form 8938).

  • UK Tax Obligations: Understand your ongoing UK tax obligations, such as on UK-sourced income or capital gains from UK assets.

  • Professional Tax Advice: Strongly consider consulting with a tax advisor specializing in US-UK expat taxation to ensure compliance and optimize your tax situation. This is particularly important regarding UK assets like ISAs or pensions, which may have different tax treatments in the US (e.g., PFICs - Passive Foreign Investment Companies).

• Pensions: Understand the implications for your UK pensions and explore options for managing them while living in the US, including potential transfers to QROPS (Qualifying Recognised Overseas Pension Schemes) or International SIPPs, though expert advice is critical here due to complex tax rules.

• US Investment options: Explore the options available to a UK citizen residing in the US interest in saving for retirement.

• Cross-border portfolio: Explore the essential criteria for building a low-risk, tax-efficient, and cost-effective investment portfolio tailored to individuals subject to U.S. and U.K. taxation.

3. Healthcare:

The US healthcare system is primarily private, making health insurance crucial.

• No NHS Equivalent: There is no direct equivalent to the UK's National Health Service (NHS). Healthcare costs can be very high.

• Health Insurance:

  • Employer-Sponsored Insurance: Many US employers offer health insurance plans as part of their benefits package. This is a common way to obtain coverage.

  • Private Health Insurance: If not covered by an employer, you will need to purchase private health insurance through the Health Insurance Marketplace (under the Affordable Care Act - ACA) or directly from insurance companies.

  • Short-Term Coverage: Consider short-term health insurance to cover any gaps upon arrival while you arrange long-term coverage.

• Understanding Terminology: Familiarize yourself with US health insurance terms like deductibles, co-payments, co-insurance, and out-of-pocket maximums.

• Prescription Medications: If you take regular medication, ensure you have an adequate supply for your initial period and research how to obtain prescriptions in the US.

Actionable Advice:

• Research insurance options before you move: Understand the types of plans available and estimated costs.

• Check with your US employer (if applicable): Understand the health insurance benefits they offer.

• Secure coverage as soon as possible upon arrival.

4. Housing:

Finding a place to live will be a top priority.

• Renting vs. Buying: Decide whether renting or buying is more suitable for your situation and duration of stay. Renting is often preferred by new expats.

• Location Research: Research neighborhoods based on factors like proximity to work/schools, safety, amenities, and cost.

• Finding Accommodation:

  • Online Portals: Utilize popular US property websites (e.g., Zillow, Realtor.com, Apartments.com).

  • Real Estate Agents/Realtors: Especially helpful for buying, but some also assist with rentals.

  • Relocation Services: Can provide comprehensive housing search assistance.

• Renting Process:

  • Documentation: Be prepared to provide proof of income/employment, visa status, and potentially a US credit check (which you won't have initially). Landlords may require a larger security deposit for those without a US credit history.

  • Lease Agreements: Carefully review lease agreements before signing. Understand the terms regarding rent, duration, utilities, and termination.

• Short-Term Accommodation: Arrange temporary housing (e.g., extended-stay hotel, Airbnb) for your initial arrival period while you search for long-term accommodation.

• Utilities: You will need to set up utilities (electricity, gas, water, internet, cable) in your name. This often requires a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) and may involve deposits.

5. Relocating Belongings and Pets:

• Shipping:

  • Sea Freight vs. Air Freight: Sea freight is more cost-effective for larger shipments but takes longer. Air freight is faster but more expensive, suitable for essential items.

  • Get Quotes: Obtain quotes from several international moving companies.

  • Customs: Understand US customs regulations for importing household goods and personal effects. Declare items accurately.

  • Insurance: Ensure your belongings are adequately insured during transit.

• Pets:

  • Regulations: US pet import regulations vary by state and depend on the type of animal. The Centers for Disease Control and Prevention (CDC) sets federal rules, particularly concerning rabies.

  • Microchip and Vaccinations: Ensure your pet has an ISO-compatible microchip and is up-to-date on all required vaccinations, including rabies. A health certificate from a UK veterinarian issued shortly before travel is typically required.

  • Airline Approved Crate: If flying, your pet will need an IATA-compliant travel crate.

  • Professional Pet Relocation Services: Consider using a specialist service for a smoother process, especially with recent changes to dog import rules (effective August 1, 2024, requiring a CDC Dog Import Form for all dogs).

6. Driving:

• UK Driving Licence: You can typically drive in the US for a limited period using your valid UK driving licence. An International Driving Permit (IDP) is recommended as a supplementary document.

• US Driving Licence: Each US state has its own driving laws and licensing requirements.

  • State Rules: Check the Department of Motor Vehicles (DMV) website for the specific state you will be residing in to understand how long you can use your UK licence and the process for obtaining a US licence.

  • Testing: In most states, you will need to pass written, vision, and practical driving tests to get a US licence, even if you have a UK licence. There is generally no direct exchange or conversion for UK licences in most states.

• Car Insurance: US car insurance is mandatory. Obtain quotes once you have a US address and/or licence.

7. Cultural Differences and Social Integration:

• Communication Styles: Americans tend to be more direct in their communication compared to the often more understated British style.

• Customer Service: Customer service is often more proactive and expressive in the US.

• Tipping Culture: Tipping is customary and expected in many service industries (restaurants, bars, taxis, hairdressers, etc.) and forms a significant part of workers' income. Research typical tipping percentages.

• Social Etiquette: While there are similarities, be aware of subtle differences in social norms and greetings.

• Work-Life Balance: This can vary significantly by industry and company in the US.

• Networking: Building a social and professional network can be very helpful for settling in.

8. Other Practicalities:

• Social Security Number (SSN): If you are authorized to work in the US, you will need to apply for an SSN. This number is essential for employment, banking, taxes, and accessing various services. If you are not eligible for an SSN but need a tax identification number, you may need to apply for an ITIN.

• Mobile Phones and Internet: Research US mobile phone plans and internet providers.

• Schools: If relocating with children, research school systems (public and private) in your chosen area and understand the enrollment process.

• UK Ties:

  • Inform UK Authorities: Inform HMRC, DVLA, your local council, and any relevant government bodies about your move.

  • Banking and Mail: Make arrangements for your UK bank accounts and mail forwarding.

  • Voting: Understand your rights regarding voting in UK elections while living abroad.

Pre-Move Checklist (Summary):

1. Visa: Secure the correct US visa.

2. Finances: Research cost of living, plan banking and money transfers, understand tax implications, and start thinking about US credit.

3. Healthcare: Research US healthcare and insurance options.

4. Housing: Decide on renting/buying, research locations, and plan for initial accommodation.

5. Job (if applicable): Secure employment or have a clear plan.

6. Documentation: Gather all essential documents (passports, birth certificates, marriage certificate, academic qualifications, driving licence, financial records, visa documentation). Get certified translations if necessary.

7. Belongings & Pets: Decide what to ship and plan pet relocation.

8. Driving: Understand US driving licence and insurance requirements.

9. Notify UK Institutions: Inform relevant UK government bodies and financial institutions.

10. Cultural Research: Familiarize yourself with US customs and etiquette.

Relocating to the US is a complex but rewarding experience. Thorough pre-planning will significantly reduce stress and help you navigate the process more effectively. Good luck with your move!